Tokyo rubber futures up as oil gains, lower yen boost risk appetite

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TOKYO, 25 (Reuters) – New benchmark TOCOM futures rose on Monday as gains in oil prices and the yen’s drop against the U.S.dollar last Friday boosted appetite for risk.

A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.

The Tokyo Commodity Exchange rubber contract for new October delivery JRUc6 0#2JRU: stood at 200.4 yen ($1.80) at 0037 GMT, up 2.3 yen, or 1.2 percent, from its opening price of 198.1 yen. It climbed 4.4 percent last week in its fourth straight weekly advance. RUB/T

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Rubber inventories in warehouses monitored by the Shanghai

Futures Exchange climbed 0.8 percent from the prior Friday, the exchange said on Friday.

TOCOM April delivery expired at 195 yen on Friday.

Volkswagen AG (VLKPF) is optimistic that its positive sales trend from the two previous quarters will continue in China, the world’s biggest auto market, its China chief Jochem Heizmann said on Sunday.

China’s emission and fuel economy rules are making it tougher for Japan’s (TOYOF) to achieve its target of selling 2 million a year there by around 2025, the carmaker’s China chief said on Sunday.

Volkswagen announced on Friday a 4.1 billion euros ($4.6 billion) operating loss for 2015 as Europe’s largest took a 16.2 billion euros hit to pay for its diesel emissions test-rigging scandal.

MARKET NEWS

Oil prices rose on Friday and notched their third straight week of gains as market sentiment turned more upbeat amid signs a persistent global supply glut may be easing.

Against the yen, the U.S. dollar slipped about 0.4 percent to 111.41 yen JPY= after it earlier rose as high as 111.90, its strongest since April 1. FRX/

Japan’s benchmark Nikkei (XC0009692440) was steady n Monday trade as investors awaited central bank meetings in the and Japan this week that are expected to hold clues to future policy moves. MKTS/GLOB

DATA/EVENTS (GMT)

The following data is expected on Monday: (Time in GMT)

0800 Ifo business climate Apr

1400 U.S. New home sales Mar

1430 U.S. manufacturing index Apr

($1 = 111.4000 yen)

(Reporting by Yuka Obayashi; Editing by Joseph Radford)

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